Exercise 6 Regarding currency crisis models, answer what the following items request. a. Explain what consists in

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Exercise 6 Regarding currency crisis models, answer what the following items request.

a. Explain what consists in third-generation currency crisis models, highlighting the main characteristics as well as presenting examples of countries that have experienced this type of event.

b. Compare the third-generation models with the first- and second-generation models, highlighting the main similarities and differences.

260 PRINCIPLES OF INTERNATIONAL FINANCE AND OPEN ECONOMY MACROECONOMICS

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